Meesho shares down 3% amid block deal buzz; check fresh targets, upside potential & more

Shares of Meesho Ltd tumbled over 3 per cent during the early trade on Tuesday amid the block deal buzz by Elevation Capital, who was likely to sell its stake in a 12 per cent stake e-commerce marketplace Meesho worth Rs 1,200 crore, suggested some media reports citing sources. The venture capital firm held a 12.04 per cent stake in Meesho as of the quarter ended in June 2026.

Shares of Meesho tumbled 3.05 per cent to Rs 177 on Tuesday, with its market capitalization slipping below Rs 83,000 crore. The stock had settled at Rs 182.55 on Monday. It has corrected more than 30 per cent from its post listing high at Rs 254.65, hit on December 18, 2025.

To recall, shares of Meesho were listed at the bourses in December 2025, when the company raised a total of Rs 5,421 crore from its IPO by selling shares of Rs 111 apiece. The stock is still trading 65 per cent above its IPO price.   

Meesho Q1 results Meesho reported a 48 per cent year-on-year (YoY) increase in revenue from operations to Rs 3,712.8 crore, while its EBITDA loss stood contracted to Rs 224.7 crore during the quarter. Its net merchandise value (NMV) grew 34 per cent YoY to Rs 11,614 crore, driven by continued user growth and higher engagement on the platform.

Marketplace revenue from operations also rose 48 per cent YoY to Rs 3,707 crore. Its contribution margin expanded to 4.6 per cent of NMV, up 54 basis points sequentially, aided by logistics efficiencies and improved platform monetisation. Prepaid orders accounted for around 37 per cent of shipped orders, which contributed to lower cancellations and return-to-origin rates. 

Marketplace adjusted EBITDA improved to a loss of 1.2 per cent of NMV during the quarter. Meesho’s annual transacting users increased 29 per cent YoY to 274 million, while purchase frequency improved to 10.3 transactions per user annually. The platform recorded 725 million placed orders during the quarter, up 29 per cent on a yearly basis.  

Meesho price targets Meesho's business model is truly asset-light requiring limited capex on physical infra or inventory. It operates on a negative working capital, which provides large float income and enables significant FCF generation, said Motilal Oswal Financial Services.

"We expect Meesho to deliver a 25 per cent CAGR in marketplace NMV over FY26-31, driven by customer acquisition and rising platform adoption. Higher ad monetization and normalization in logistics spread should drive 400 bps expansion in contribution margin to 7.5 per cent by FY31," it added and initiated coverage on Meesho with a 'buy' rating and a target of Rs 240.

Choice Institutional Equities said that the initiatives could enable the company to replicate its asset-light, low-cost logistics model (similar to Valmo) in grocery delivery, significantly expanding its total addressable market (TAM), particularly in value-conscious and underserved regions.

"Factoring in an improvement in contribution margin from current levels, we now expect Meesho to achieve EBITDA breakeven by H2FY28E, supported by logistics normalization and steady progress in ad monetisation," it added with a 'buy' rating and a target price of Rs 220, apiece.

Management indicated soft growth in Q2 due to pushout of mega blockbuster sales to Q3 versus the base quarter, last year and sharp rise in A&P in Q2 as a precursor to the festive season in Q3, said JM Financial. "While we tweak our segmental estimates to factor in the Q1 results, our consolidated estimates over FY27–29E see marginal changes," it added but maintained a 'reduce' rating with a target price of Rs 185.